A lot of people will recall Bitfinex has announced the issuance of BFX tokens to affected customers. These tokens could then be returned to the company in exchange for a stake in parent company iFinex Inc. BnkToTheFuture has been tapped at the platform to make this switch happen in the coming months.
BnkToTheFuture Works Together With Bitfinex
It is positive to see Bitfinex keep their word regarding the BFX tokens. Ever since these OMNI-based tokens were issued, there were serious doubts regarding its value. But the exchange is making good on their word by signing a letter of intent with BnkToTheFuture.
As a result of this first step, both parties will work together in bringing iFinex equity to BFX token holders. BnkToTheFuture is a very popular online investment platform with strong ties to cryptocurrency and fintech. In fact, one could argue they are the perfect team to get this job done without much hassle.
All of the BFX tokens in circulation represent an outstanding debt by Bitfinex to their customers. All of the platform users paid a 36% haircut after the exchange lost nearly 120,000 bitcoins due to a hack. However, rather than waiting for those tokens to increase in value, users can simply get an equity stake in the parent company.
Putting this plan into action will take several weeks, if not months, to complete. There are a few legal and technical matters that will need to be addressed by all parties involved. It will also be interesting to see how many people decide to convert their tokens to iFinex Inc equity, as token holders would need to meet “certain criteria” for that to happen.
A Special Purpose Vehicle will need to be created for these qualifying BFX token holders to convert their tokens into equity. This slice of equity will be determined based on the number of tokens, and the compliance requirements for individual jurisdictions. More details will be made available in the coming weeks.
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